Cardinal Health on Tuesday showed why the healthcare distributor belongs in our portfolio, delivering robust full-year earnings guidance that trumped some imperfections in the final quarter of its fiscal 2026.
Revenue for the three months ending June 30 increased nearly 6% year over year to $63.67 billion, missing expectations of $65.03 billion.
Adjusted earnings per share (EPS) came in at $2.60, ahead of the $2.42 consensus estimate.
Shares of Cardinal Health rose more than 1% Tuesday, setting a fresh record close.
We are raising our price target to $265 from $245.
Cardinal Health continues to grow, especially in high-margin areas like specialty pharmaceuticals.
